Geithner Bank Plan Faces New Wave Of Criticism

Two weeks after being introduced, Timothy Geithner's bank rescue plan is facing a new round of withering criticism from economists who say the proposal is likely to produce major losses for taxpayers as banks and investors game the system.

In public writings and interviews with the Huffington Post, some of the same figures that issued early warnings about the current financial crisis now say that Geithner's designs for alleviating toxic assets from the nation's banks are inherently flawed. As evidence, they point to the massive amount of federal funding, in the form of FDIC backing, being offered to prospective buyers of toxic assets. It is the "closest thing to risk-free investing -- with leverage! -- around," wrote Andrew Ross-Sorkin of the New York Times.